An explanation of consumer trust recovery in a food retailer

An organization trusted by consumers enjoys a number of benefits. Unfortunately, instances of trust-damaging events involving organizations happen often. Damaged consumer trust in an organization has numerous negative consequences for the organization and for consumers. Currently, there is a paucity of theory about consumer trust recovery. So, understanding why and how consumer trust recovery occurs is timely, and theoretically and practically relevant. However, the findings from this study suggest that we need to distinguish between two kinds of consumer trust recovery. The first (I call it unconscious consumer trust recovery) refers to trust recovery that occurs without the consumer being fully conscious of it. In other words, a consumer is aware of their damaged trust during the scandal, but is not aware that their trust in the organization has improved. The consumer does not think about his or her recovered trust, just as they did not think about their level of trust before the scandal. The consumer trust is habitual. The second (I call it conscious consumer trust recovery) refers to an improvement in damaged trust where the consumer is fully conscious of their trust recovery. In other words, in conscious trust recovery the consumer is aware that the scandal damaged their trust in the organization. Also, after the scandal, in contrast to unconscious trust recovery, in conscious trust recovery the consumer is also fully aware that he trusts the organization as much or more than during the scandal. My aim is to inductively develop a theory explaining each type of consumer trust recovery. To do so, I use Charmazian grounded theory methodology, because this methodology is developed for theory-building from data and is aligned with the philosophical underpinnings of this study. The empirical context for this study is the meat adulteration scandal (“the horse meat scandal”) in 2013 in the UK. I collect and analyse empirical data about both types of trust recovery in an organization from 31 consumers that experienced both types. My analysis shows that when consumers perceive the scandal as less important, they experience unconscious trust recovery. This happens because the reduced importance of the scandal leads to a shift in consumers’ attention, which in turn leads to their inattentiveness to the scandal. Consumer inattentiveness is an immediate antecedent of unconscious trust recovery. Conscious consumer trust recovery occurs because consumers see cues indicating to them that the food retailer has improved product control systems, which in turn leads to consumer perceptions of the organization’s renewed ability. Consumer perception of renewed ability is an immediate antecedent of their conscious trust recovery. My findings lead me to make three main theoretical contributions to the theory of trust recovery in general and to consumer trust recovery in particular. The first contribution lies in showing that there are two types of consumer trust recovery in an organization, not one, as previously conceptualised, and that the same consumers can experience both types. The second contribution is a theory of unconscious consumer trust recovery in an organization that involves three concepts: consumers’ perceived importance of the scandal, consumers’ shift of attention, and consumer inattentiveness. The third contribution is the finding that conscious recovery of consumer trust occurs even when existing theory of trust recovery would predict that it would not. This study can help managers aiming to repair consumer trust in an organization by identifying a set of antecedents and underlying mechanisms that can guide such trust repair.

Hybridity in contemporary commercial organizations: implications for employee trust

This study advances the concept of organizational hybridity (OH). By doing so, it takes into account the individual level of analysis often neglected in organizational theory. More specifically, it aims to understand the implications of organizational hybridity for employees’ trust in contemporary commercial organizations. Informed and guided by current literature, this study argues that the current literature on organizational hybridity fails to adequately address the consequences of hybridity for employees' behaviour. The empirical study was conducted in 2014 using data collected via semi-structured interviews and document analysis. The study was based on a comparison of two case studies in Nigeria: Alter Securities Limited and Barak Petroleum Limited. A total of forty (40) interviews were conducted; twenty (20) from each organization. The data were analysed using thematic analysis. The main findings are that organizational hybridity in this study produced tensions that resulted in negative behavioural responses and employees’ distrust in the commercial hybrid organizations. However, employees’ identification with non-market orientated institutional logics such as family, philanthropic and religious logics is seen to facilitate their commitment, honesty, and trust in the organizations. Nevertheless, caution is required here as religious logics may also lead to an acceptance of unethical behaviour by employees. Overall, this study contributes to the literature on organizational hybridity by extending on Battilana and Lee’s (2014) framework, which highlights governance, leadership, organizational culture and intra-organizational relationships as core organizational attributes in the context of which issues may arise in commercial hybrid organizations. Furthermore, it addresses a gap in Besharov and Smith’s (2014) hybrid typology framework by providing an alternative line of argument focused on understanding how tensions manifest within commercial hybrid organizations. The key recommendations of this research underscore the need for commercial hybrid organizations to invest in mechanisms for improving employees’ trust so as to reap the benefits associated with trust. This could be achieved by involving employees in the decision-making process and clearly communicating the organizations’ values, so as to minimise the misinterpretation of the embodied institutional logics by employees.